MOTOR CARRIER FEE; TOWING OPERATIONS                                                   S.B. 309:

                                                                                 SUMMARY OF INTRODUCED BILL

                                                                                                         IN COMMITTEE

Senate Bill 309 (as introduced 5-9-19)

Sponsor:  Senator Dale W. Zorn

Committee:  Transportation and Infrastructure

Date Completed:  6-5-19

CONTENT

The bill would amend the Motor Carrier Act to prescribe an annual fee of $50 for each vehicle used for intrastate nonconsensual towing operations by a unified carrier registration (UCR) motor carrier subject to Federal requirements.

Under the Act, in addition to the license fees or taxes otherwise imposed upon motor carriers, the Michigan Public Service Commission must assess and collect from each motor carrier an annual fee of $100 for each self-propelled intrastate motor vehicle operated by or on behalf of the motor carrier for the administration of the Act. If a motor carrier begins operation of the vehicle after June 30 and previously has not paid the fee for that vehicle, then the Commission must assess and collect a fee of $50 for each vehicle.

Additionally, for each truck used exclusively for the transportation of household goods, the annual fee is $50. Under the bill, this fee also would apply to a vehicle used for intrastate nonconsensual towing operations by a UCR motor carrier subject to the requirements of Section 4305 of the Federal Unified Carrier Registration Act.

(Generally, Section 4305 of the Unified Carrier Registration Act specifies that it is an unreasonable burden upon interstate commerce for any state or its political subdivisions to impose any requirement, including the payment of a tax or a fee, on an interstate motor carrier related to the registration of the carrier's interstate operations with the state, among other things. The Act does not restrict a state's authority to regulate carriers that operate solely intrastate, and that do not operate at all in interstate commerce.)

MCL 478.2 & 478.8                                                  Legislative Analyst:  Tyler VanHuyse

FISCAL IMPACT

The bill would have a minor fiscal impact on the State and no impact on local government. The Commercial Vehicle Enforcement Division of the Department of State Police estimates that approximately 300 commercial vehicles would be effected by the bill's provisions, which likely would result in total annual fee revenue of approximately $15,000.

                                                                                 Fiscal Analyst:  Michael Siracuse

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.